War-Related Oil Crisis Forces Cairo Businesses to Close Early, Devastating Economy

Egypt has mandated early closing times for businesses nationwide to conserve electricity amid soaring oil costs from the U.S.-Israel conflict with Iran. The 9 p.m. closure requirement is devastating Cairo's famous nightlife and forcing massive layoffs at cafes and restaurants that traditionally operate around the clock.

CAIRO (AP) — Egypt has implemented mandatory early closure times for businesses across the nation as officials scramble to reduce electricity consumption while oil prices surge due to the ongoing U.S.-Israel conflict with Iran, fundamentally altering Cairo’s reputation as a sleepless metropolis.

Beginning Saturday, authorities mandated that all retail establishments, dining venues and coffee houses must close their doors earlier than usual, disrupting operations during their most profitable periods.

“It’s ruinous,” declared Youssef Salah, who operates a coffee house in Cairo. “It deprives us from our peak time.”

This mandate represents just one element of multiple strategies officials have implemented recently to address consequences from the U.S. and Israeli military campaign against Iran, which has destabilized both Middle Eastern stability and worldwide economic systems. While Egypt remains uninvolved in this expanding conflict, the nation with the largest Arab population faces severe impacts from the war’s extensive effects, particularly elevated petroleum costs and interrupted maritime commerce.

These mandated early shutdowns will severely affect hundreds of thousands of small enterprises located throughout virtually every street and neighborhood nationwide. Many establishments — particularly restaurants, beverage vendors and coffee houses — typically maintain continuous operations.

Salah, whose establishment serves Cairo’s middle-income Sayeda Zeinab district, revealed he eliminated 40% of his 35 employees due to these restrictions.

The 46-year-old father of three previously maintained round-the-clock operations, with maximum customer activity occurring from evening through early morning hours. Those overnight periods have been eliminated entirely, he explained.

“It’s painful,” Salah stated while securing his establishment at 9 p.m. (19:00 GMT) Saturday.

However, within two days of implementation, some Egyptians found ways to circumvent official requirements. Certain coffee houses secured their main entrances while customers remained inside enjoying water pipes or engaging in chess, dominoes or card games.

Others utilized social media platforms to mockingly condemn the policy for eliminating Cairo’s evening entertainment options.

“The Butterfly effect,” wrote Mahmoud Elmamlouk, a local publication editor, on social media following coffee shop closures Saturday evening. “The closure of Strait of Hormuz has deprived us from smoking shisha.”

Ayman Harbi, employed at a downtown Cairo store, requested officials extend operating hours until at least midnight, describing the 9 p.m. requirement as “extremely difficult” for enterprises like his.

“Our work in the summer usually starts after 8 p.m. (18:00 GMT),” he explained. “Forcing me to close at 9 p.m. (19:00 GMT) makes the workday pointless.”

Magdy al-Deeb, another business proprietor, pressed authorities to withdraw this policy to maintain employment opportunities, particularly for coffee houses and small enterprises.

“Where will all those people (workers) go,” he questioned regarding potential job losses. While enjoying a water pipe at a Cairo café, he emphasized that society “must protect people’s livelihoods.”

This early closure requirement has also transformed daily routines for Egyptians accustomed to purchasing virtually any item at any hour, particularly in major urban centers like Cairo and Alexandria.

Weekend evening observations throughout Cairo revealed the city’s typically bustling streets had become unusually silent.

Commercial establishments, dining venues, shopping centers and coffee houses nationwide must now close at 9 p.m. (19:00 GMT) for one month.

These policies — characterized by officials as “exceptional” — also include reducing street lighting intensity and roadside advertisements. Government administrative offices in the New Administrative Capital, located east of Cairo, received orders to close by 6 p.m. (16:00 GMT). Public employees were also instructed to work remotely one day weekly during April.

Officials exempted tourist destination areas from these energy conservation measures, recognizing tourism as a vital foreign currency source for the financially struggling nation. Excluded locations include Red Sea resort destinations Hurghada, Sharm el-Sheikh, Marsa Alam, plus the historically significant southern cities Aswan and Luxor.

Prime Minister Mustafa Madbouly explained these measures target petroleum consumption reduction.

“The alternative would be to resort again to further price increases,” he cautioned.

Authorities already increased fuel and cooking gas costs earlier this month as worldwide energy prices climbed following the virtual blockade of the Strait of Hormuz, a vital passage for approximately one-fifth of global oil transportation.

International energy costs have risen dramatically since hostilities began February 28, when the U.S. and Israel initiated extensive air campaigns against Iran, which responded by attacking oil and gas facilities throughout the Persian Gulf region and restricting Strait of Hormuz traffic.

These increases particularly impact Egypt given that its population exceeding 108 million people consumes $20 billion worth of petroleum products yearly, including fuel for electrical generation facilities.

Egypt imports 28% of its gasoline and 45% of its diesel supplies, with Madbouly reporting the nation’s oil expenses more than doubled from January to $2.5 billion.